Technical Assistance Subproject Report

Project Number: 52041-002 Knowledge and Support Technical Assistance (C-KSTA) December 2018

Integrated High Impact Innovation in Sustainable Energy Technology Subproject 1: Energy System Analysis, Technology Road Maps and Feasibility Studies for Pilot Testing This document is being disclosed to the public in accordance with ADB's Access to Information Policy.

ABBREVIATIONS ADB – Asian Development Bank DMC – developing member country NDC – nationally determined contribution TA – technical assistance

NOTE In this report, "$" refers to United States dollars.

In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

CONTENTS Page

KNOWLEDGE AND SUPPORT TECHNICAL ASSISTANCE AT A GLANCE

I. THE TECHNICAL ASSISTANCE SUBPROJECT 1 A. Overall Progress of the Technical Assistance Cluster 1 B. Subproject Outcome 1 C. Subproject Outputs, Methods, and Activities 1 D. Subproject Cost and Financing 2 E. Subproject Implementation Arrangements 2

APPENDIXES

1. Subproject Design and Monitoring Framework 5

2. Subproject Cost Estimates and Financing Plan 8

3. List of Linked Documents 11

KNOWLEDGE AND SUPPORT TECHNICAL ASSISTANCE AT A GLANCE

I. THE TECHNICAL ASSISTANCE SUBPROJECT A. Overall Progress of the Technical Assistance Cluster 1. The knowledge and support technical assistance (TA) cluster on Integrated High Impact Innovation on Sustainable Energy Technology was approved by the President on 16 October 2018. The TA cluster will prepare energy system development scenarios and technology road maps and support the scale-up of innovative energy technologies in developing member countries (DMCs). The TA cluster is aligned with the energy policy of the Asian Development Bank (ADB). It will support ADB in implementing its Strategy 2030 and DMCs in meeting the Sustainable Development Goals, including their nationally determined contributions (NDCs) as part of the Paris Agreement on climate change. The TA cluster aims to achieve greater development impact through energy sector technology innovations in ADB operations to meet the SDGs and NDCs in Asia and the Pacific. 2. Three Subprojects have been defined under the TA cluster: i) Energy System Analysis, Technology Road Maps, and Feasibility Studies for Pilot Testing (Subproject 1); ii) Prefeasibility Analysis for Carbon Capture, Utilization, and Storage (Subproject 2); and iii) Pilot Testing of Innovative Energy Technologies and Business Models (Subproject 3). Subprojects 1 and 2 are proposed to be processed and approved within 2018 while Subproject 3 will be processed during Q1 of 2019. B. Subproject Outcome 3. The TA subproject 1 will have the following outcome: use of sustainable innovative technologies in participating DMCs increased. The TA subproject outcome will support the following outputs of the overall TA cluster: i) energy system scenarios and technology road maps produced; ii) city-, country-, and/or region-specific feasibility studies for pilots or investments produced; iii) regional knowledge sharing and support of scale-up of innovative technologies and suitable business models disseminated.

C. Subproject Outputs, Methods, and Activities 4. Output 1: Energy system scenarios and technology road maps produced. The TA subproject will support the development and dissemination of energy system projections and technology road maps that demonstrate sustainable energy system development pathways for specific cities, countries, or subregions in consideration of their NDCs. The analytical approach will use national and global data along with modelling to develop scenarios. National and regional workshops will be used to seek inputs to develop scenario narratives and high-level technology road maps disseminated through digital publications. Output 1 will provide the rationale to carry out activities associated with output 2 and substantive content that will be shared in output 3. 5. Output 2: City-, country-, and/or region-specific feasibility studies for pilots or investments produced. The TA subproject will provide support to ADB’s regional departments and the Private Sector Operations Department to develop feasibility studies for high-level energy technologies,1,2 focusing on costs, environmental and public health benefits to consumers, carbon 1 Technologies supported by output 2 will be consistent with the analysis performed in output 1, the country NDC, the

country operations business plan, and/or specific projects in the operation’s pipeline. This will ensure that technologies are chosen deliberately and not in an ad hoc manner.

2 The emphasis will be on sustainable technologies and supporting business and regulatory models that can be scaled up across a large number of ADB DMCs. Includes, but not limited to waste-to-energy, renewable generation,

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footprint, sustainability and deployment considerations, and scalability and future investment potential specific to supporting ADB’s pipeline. Feasibility studies will contribute to the development of ADB lending projects when deemed appropriate. 6. Output 3: Regional knowledge sharing and support of scale-up of innovative technologies and suitable business models disseminated. The TA subproject will include capacity building and knowledge sharing (especially supporting experience transfer and connectivity across Asia and the Pacific) to ensure that the knowledge developed, and the applicable high-level technologies identified (including new and existing technologies not well known across the region) can be shared throughout Asia and the Pacific to promote sustainable innovative technology transfer and deployment. National and regional workshops will be held as platforms to facilitate activities and enhance capacity and knowledge of subject matter experts, ADB staff, academia and private sector technology providers, as appropriate. D. Subproject Cost and Financing 7. The TA subproject is estimated to cost $3.85 million, of which (i) 0.7 million will be financed on a grant basis by the Climate Change Fund,3 (ii) 0.7 million will be financed on a grant basis by the Clean Energy Fund4 under the Clean Energy Financing Partnership Facility, (iii) 0.55 million will be financed on a grant basis by the Urban Climate Change Resilience Trust Fund5 under the Urban Financing Partnership Facility, (iv) 0.85 million will be financed on a grant basis by the Republic of Korea e-Asia and Knowledge Partnership Fund,6 (v) 0.7 million will to be financed on a grant basis by the People's Republic of China Poverty Reduction and Regional Cooperation Fund,7 (vi) 0.25 million will be financed on a grant basis by the United States Agency for International Development, and (vii) 0.1 million will be financed on a grant basis by the Clean Technology Fund.8 The key expenditure items are listed in Appendix 2. E. Subproject Implementation Arrangements 8. ADB will be the executing agency and will administer the TA. The Energy Sector Group, Sector Advisory Service Cluster of the Sustainable Development and Climate Change Department will be responsible for the overall implementation of this subproject and will work closely with ADB’s regional departments, the Private Sector Operations Department, the sector and thematic groups, technology developers, and DMC stakeholders in undertaking specific activities and engaging other partners. ADB’s TA team leader will lead the implementation of the TA under the guidance of the Chief of the Energy Sector Group and the Chief Sector Officer of the Sector Advisory Service Cluster. ADB’s TA guidelines and procedures will be followed in the implementation of this TA regardless of funding source. All DMCs will benefit from this TA,

sustainable hydro power, thermal energy and electricity storage, electric mobility, demand side technologies that support energy efficiency and electricity system operations, efficient and clean heating and cooling technology, decentralized technologies that can support access to energy and enabling information and communication technologies including smart grids.

3 Established by ADB. 4 Financing partners: the governments of Australia, Norway, Spain, Sweden, and the United Kingdom. Administered

by the Asian Development Bank (ADB). 5 Financing partners: the Rockefeller Foundation and the governments of Switzerland and the United Kingdom. Administered by ADB.

6 Administered by ADB. 7 The fund was originally named “People’s Republic of China Regional Cooperation and Poverty Reduction Fund” in

the 2005 Board paper. Administered by ADB. 8 Administered by ADB.

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however, priority will be given to those who have strong interest from governments, technology providers, and project developers. 9. The TA will mainly finance analysis, pre-feasibility and feasibility studies that may be essential to test and determine the scalability of certain technologies. The TA will also organize capacity building and knowledge sharing activities, engage consultants to support the implementation of projects, and provide staff to act as the resource persons in the workshops and training. Confirmation of no objection will be obtained from the DMCs, which will be identified in consultation with relevant departments, prior to the implementation of any activities financed by this TA. The implementation period of this TA subproject will be from December 2018 until September 2023. 10. The implementation arrangements are summarized in the table.

Subproject Implementation Arrangements Aspects Arrangements Indicative implementation period December 2018–September 2023 Executing agency ADB (Energy Sector Group) Implementing agency ADB (Energy Sector Group) Consultants To be selected and engaged by ADB

Firm/s Quality- and cost-based (90:10), or fixed budget selection

$2,050,000

Individuals (International and National)

Individual consultant selection

Procurementa To be procured by consultants or ADB Shopping computers, printers,

software, and accessories may be procured

$ 50,000

Disbursement The TA cluster resources will be disbursed following ADB's Technical Assistance Disbursement Handbook (2010, as amended from time to time). Arrangements for disbursement from multiple funding sources will be agreed with the cofinanciers.

Asset turnover or disposal arrangement upon TA completion

When the TA is completed, ADB and/or consultant will promptly turnover any purchased equipment to the government or dispose of these. Consultant will then submit a certificate of turnover or disposal to the user unit.

a Procurement Plan (in Appendix 3). Source: Asian Development Bank. 11. Consulting services. ADB will contract individual consultants for the implementation of TA activities. A total of 201 person-months of firm and individual consulting services (89 person-months of international consulting inputs and 112 person-months of national consulting inputs) will be engaged.9 ADB will engage the consultants following the ADB Procurement Policy (2017, as amended from time to time) and its associated project administration instructions and/or staff instructions.

9 Output-based/lumpsum contracts will be considered for consulting services where appropriate with the concurrence of PPFD.

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12. ADB’s procurement. Procurement will follow the ADB Procurement Policy (2017, as amended from time to time) and Procurement Regulations for ADB Borrowers (2017, as amended from time to time). 13. Monitoring and Reporting. Project implementation, supervision, and monitoring will be conducted by the Energy Sector Group following ADB’s standard policies, procedures, and guidelines, including consulting services and procurement, social and environmental safeguards, financial management and reporting, and anticorruption and governance. During implementation, the Office of Cofinancing Operations of the ADB and relevant fund managers will assist in monitoring, advice, and capturing lessons learned.

Appendix 1 5

SUBPROJECT DESIGN AND MONITORING FRAMEWORK

Impact the TA is Aligned with

Access to reliable, low-carbon, and cost-effective energy increaseda

Results Chain Performance Indicators

with Targets and Baselines Data Sources and

Reporting Mechanisms Risks Outcome Use of sustainable innovative technologies in participating DMCs increased

At least 6 projects in DMCs included in ADB’s project pipeline using innovative energy technologies and/or energy system analysis (including road maps) by 2023 including two UCCRTF cities or countriesb (2017 baseline: 0)

Country partnership strategies, country operations business plans, International Energy Agency reports, nationally determined contributions reporting and updates

Changes in governments may lead to less priority and/or support for the implementation of innovative technologies.

Outputs 1. Energy system scenarios and technology road maps produced

1a. Regional energy scenario for two ADB regions contrasting a business as usual and climate change mitigation approach energy system development plan completed by 2023 (2017 baseline: 0) 1b. Two subregional energy scenarios for ADB subregions contrasting a business as usual and climate change mitigation approach energy system development plan completed by 2023 (2017 baseline: 0) 1c. Five country-specific energy scenarios a business as usual and climate change mitigation approach energy system development plan completed by 2023 (2017 baseline: 0) 1d. At least three climate change mitigation or adaptation technology-specific road maps that highlight the need technology and policy development needs completed by 2023 (2017 baseline: 0)

1a.–d. Publications with knowledge partners, regional organization, and/or consultants

Delays in securing clearances for data gathering, analysis and studies, from governments may hinder the timely implementation of projects and/or activities.

6 Appendix 1

Results Chain Performance Indicators

with Targets and Baselines Data Sources and

Reporting Mechanisms Risks 2. City-, country-, and/or region- specific feasibility studies for pilots or investments produced

2. Feasibility studies for eight candidate pilot operations for technologies or business models that support climate change mitigation or adaptation including at least one urban intervention in a UCCRTF city or country prepared by 2023 (2017 baseline: 0)

2. Feasibility study reports

3. Regional knowledge sharing and support of the scale-up of innovative technologies and suitable business models disseminated

3a. Ten knowledge-sharing and transfer events, including Asia and Pacific exchanges as well as organized study tours, including at least one related to a UCCRTF city or country activity (2017 baseline: 0) 3b. From a participation of at least 3,000 people, thirty-five percent of participants provided feedback on increased awareness of innovative technologies, of which twenty-five percent are women (2017 baseline: 0) 3c. Five publications on innovative technologies and/or business models produced by 2023, including at least one related to a UCCRTF city or country activity (2017 baseline: 0)

3a.–b. Publications from seminars and workshops, including ADB working papers, and post-training workshop surveys 3c. Working papers, blogs and videoblogs publications

Key Activities with Milestones

1. Energy system scenarios and technology road maps produced

1.1 Collaborate with regional departments and PSOD in consulting with DMCs to determine which technologies need road maps (Q4 2018–Q1 2023).

1.2 Engage with organizations to develop energy system development scenarios and technology road maps with specific country context, based on analysis and DMC stakeholder consultation (Q1 2019–Q3 2023).

2. City-, country-, and/or region-specific feasibility studies for pilots or investments produced 2.1 Consult with regional departments and PSOD to identify city, country, and/or regional candidates for

pilot demonstrations where feasibility studies are needed (Q4 2018–Q2 2023). 2.2 Engage with organizations to conduct city-, country-, and/or region-specific feasibility studies (Q4

2018–Q3 2023).

Appendix 1 7

3. Regional knowledge sharing and support of scale-up of innovative technologies and suitable business models disseminated

3.1 Develop and finalize programs for knowledge-sharing activities (Q4 2018–Q3 2023). 3.2 Identify resource persons and DMC participants (Q4 2018–Q3 2023).

Inputs

ADB (Climate Change Fund): $700,000

Clean Energy Fund under the Clean Energy Financing Partnership Facility: $700,000

Clean Technology Fund: $100,000

Republic of Korea e-Asia and Knowledge Partnership Fund: $850,000

United States Agency for International Development: People's Republic of China Poverty Reduction and Regional Cooperation Fund:

Urban Climate Change Resilience Trust Fund under the Urban Financing Partnership Facility:

Total

$250,000 $700,000 $550,000 $3,850,000

Assumptions for Partner Financing

Not Applicable.

ADB = Asian Development Bank, DMC = developing member country, PSOD = Private Sector Operations Department, Q = quarter, UCCRTF = Urban Climate Change Resilience Trust Fund. TA = technical assistance. a Defined by TA. b The following are the 25 priority cities: Bagerhat, Faridpur, Gopalgani, Kushtia, and Patuakhali (Bangladesh); Kolkata

and Visakhapatnam (India); Makassar (Indonesia); Mandalay and Yangon (Myanmar); Kathmandu (Nepal); Abbotabad, Mardan, Sahiwal, Sialkot and Peshawar (Pakistan); Del Carmen, Janiuay, La Trinidad and Malay (Philippines); and Dong Hoi, Hue, Ha Giang, Hoi An and Vihn Yen (Viet Nam).

Source: Asian Development Bank.

8 Appendix 2

SUBPROJECT COST ESTIMATES AND FINANCING PLAN

($’000)

Item Amount A Climate Change Funda 1. Consultants

a. Remuneration and per diem i. International consultants ii. National consultants b. International and local travel c. Reports and communications

2. Publications and Information Servicesb 3. Surveys and studies 4. Training, seminars, and conferencesc 5. Goods (rental or purchase)d 6. Miscellaneous administration and support costse 7. Contingencies

Subtotal (A)

350.00 100.00

80.00 5.00 5.00

25.00 100.00

5.00 5.00

25.00 700.00

B Clean Energy Fundf under the Clean Energy Financing Partnership Facility

1. Consultants a. Remuneration and per diem i. International consultants ii. National consultants b. International and local travel c. Reports and communications

2. Publications and Information Services b 3. Surveys and studies 4. Training, seminars, and conferencesc 5. Goods (rental or purchase)d 6. Miscellaneous administration and support costse 7. Contingencies Subtotal (B)

200.00 95.00 50.00 50.00

5.00 50.00

200.00 5.00

15.00 30.00

700.00 C Clean Technology Fundg 1. Consultants

a. Remuneration and per diem i. International consultants ii. National consultants b. International and local travel c. Reports and communications

2. Miscellaneous administration and support costse 3. Contingencies Subtotal (C)

45.00 20.00 15.00 10.00

5.00 5.00

100.00 D People's Republic of China Poverty Reduction and

Regional Cooperation Fundg

1. Consultants a. Remuneration and per diem i. International consultants ii. National consultants

180.00 90.00

Appendix 2 9

b. International and local travel 2. Surveys and studies 3. Training, seminars, and conferencesc 4. Miscellaneous administration and support costse 5. Contingencies Subtotal (D)

70.00 100.00 200.00

10.00 50.00

700.00 E Republic of Korea e-Asia and Knowledge

Partnership Fundg

1. Consultants a. Remuneration and per diem i. International consultants ii. National consultants b. International and local travel c. Reports and communications

2. Publications and Information Services b 3. Surveys and studies 4. Training, seminars, and conferencesc 5. Goods (rental or purchase)d 6. Miscellaneous administration and support costse 7. Contingencies Subtotal (E)

200.00 75.00 55.00 10.00 10.00

350.00 125.00

5.00 10.00 10.00

850.00 F United States Agency for International Development

Training, seminars, and conferences Asia Clean Energy Forum 2019 Asia Clean Energy Forum 2020 Asia Clean Energy Forum 2021 Asia Clean Energy Forum 2022 Asia Clean Energy Forum 2023 Subtotal (F)

50.00 50.00 50.00 50.00 50.00

250.00

G Urban Climate Change Resilience Trust Fundh under the Urban Financing Partnership Facility

1. Consultants a. Remuneration and per diem i. International consultants ii. National consultants b. International and local travel c. Reports and communications

2. Publications and Information Services b 3. Surveys studies 4. Training, seminars, and conferencesc 5. Goods (rental or purchase)d 6. Miscellaneous administration and support costse 7. Contingencies Subtotal (G)

200.00 75.00 75.00

5.00 5.00

50.00 100.00

5.00 10.00 25.00

550.00 Total 3,850.00

Source: Asian Development Bank (ADB) Estimates a Established by ADB. b Subscription to database and information services. c Includes honorarium and travel costs for resource persons and facilitators, participants’ travel costs, staff travel cost as resource persons and/or speakers, and logistical costs.

10 Appendix 2

d Includes hardware such as computers, computer paraphernalia and accessories including desktops, notebooks/laptops, servers, printers, telecommunications equipment such as handsets, cellular phones, private automatic branch exchange (PABX), satellite dishes, facsimile machines, computer projectors, storage devices, and power supply; and software such as applications or programs for the computer.

e Includes expenses for printing, publications, and subscription to database and information services. f Financing partners: the governments of Australia, Norway, Spain, Sweden and the United Kingdom. Administered by

ADB. g Administered by ADB. h Financing partners: the Rockefeller Foundation and the governments of Switzerland and the United Kingdom.

Administered by ADB.

Appendix 3 11

LIST OF LINKED DOCUMENTS

http://www.adb.org/Documents/LinkedDocs/?id=52041-002-TAReport

1. Terms of Reference for Consultants 2. Procurement Plan